outside of the Protected Territory, except in cooperation with other franchisees of Franchisor as specified in Section 11.4 herein, nor may Franchisee provide any 360 Painting services at any location outside the Protected Territory, except with the written permission of Franchisor (and if such permission is granted, such permission shall not be deemed to grant Franchisee general, ongoing, or permanent rights to service that customer or other customers outside of the Protected Territory). Franchisee agrees to open only one (1) Business within the Protected Territory, and further agrees not to relocate the Business within the Protected Territory without prior written consent from Franchisor. The location of the Business shall either be Franchisee's home office or an office location selected by Franchisee and approved by Franchisor. In all cases, Franchisee must operate the Business only in the Protected Territory and only from a home office (or other approved office space) and all Vehicles, and the home office (or other approved office space) and all Vehicles must be located in the Protected Territory at all times.

• 2.2 Territorial Protection. Subject to Sections 2.3 and 2.4, during the term of this Agreement, Franchisor shall not, nor shall Franchisor license any person other than Franchisee to, establish and operate a Business providing System services to residential or "light commercial" customers within the Protected Territory using the Marks or the System. The term "light commercial" means buildings and facilities that are similar in size and scope to single family residences. As the 360 Painting system is focused on the provision of residential and light commercial painting services, there are no current restrictions on the provision of commercial painting services beyond light commercial. Moreover, Franchisor agrees that, except with regard to actual or prospective customers designated as National Accounts (as defined and governed by Section 2.4 herein), Franchisor will refer to Franchisee all requests for System services to be provided at physical locations within the Protected Territory. Except as provided herein, Franchisee has no exclusive territorial rights, protected territory or other right to exclude, control or impose conditions on Franchisor's activities or on the location, development or operation of other or future franchises under the Marks.

2.3 Reservation of Rights.Franchisor retains the right, in its sole discretion, to:

• (i) own and operate, and license to others the right to own and operate 360 Painting Businesses outside of the Protected Territory using the Marks or any other marks Franchisor may designate;
• (ii) own and operate and license to others the right to own and operate similar businesses inside or outside of the Protected Territory under different marks;
• (iii) use the Marks and System in connection with conducting marketing and promotional activities within or outside of the Protected Territory, including marketing and promotional activities related to the solicitation of National Accounts (as defined in Section 2.4, below);